Collar Strategy
December 06, 2021
Other

Collar Strategy

The Collar strategy is a strategy that allows investors to protect from large downside losses on a stock. This strategy requires the investor to have a minimum of 100 shares of the stock. The Collar strategy can also be considered as a combination of two strategies – writing a Covered Call and buying a Put option. Collars...

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2 months ago
Multi-Leg Options Can Reduce Risk & Improve Executions
November 03, 2021
Other

Multi-Leg Options Can Reduce Risk & Improve Executions

Trading options involves selecting from a world of options, which may seem overwhelming at first. With 4 core strategies, buying calls, selling calls, buying puts and selling puts, it’s already a step up in complexity from stock investing and trading. Despite the flexibility that these strategies provide, each has their...

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3 months ago
Covered Combination
September 28, 2021
Other

Covered Combination

Introduction A covered combination is an often-overlooked options strategy by many investors who may utilize each half of the strategy separately, but never considered combining them. This is a strategy where an investor owns 100 shares of a stock and sells a covered call and a cash secured put at the same time. The motivation...

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4 months ago
Growing an Options Account Sustainably
September 07, 2021
Other

Growing an Options Account Sustainably

Investors that are starting to trade options tend to have smaller trading accounts. In this post we will discuss the challenges with growing a smaller options account and the strategies to do so sustainably. While smaller accounts are more challenging to grow, there are best practices and strategies that investors can use for...

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5 months ago
High Yield Income Opportunities using OptionsPlay
August 16, 2021
Other

High Yield Income Opportunities using OptionsPlay

Option income strategies can be used to increase the yield of an equity portfolio by generating an income stream and by purchasing stocks at a potential discount. This post will cover which options strategies to use based on your primary goal, how to implement these strategies and how you can instantly scan the entire market...

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5 months ago
Collect Maximum Income Selling Straddles and Strangles
July 08, 2021
Other

Collect Maximum Income Selling Straddles and Strangles

Straddles and strangles are considered advanced options strategies that are suitable for more experienced traders with a high tolerance for risk. However, they also generate maximum income for investors with larger accounts and longer investment horizons. Both of these strategies require a sizable margin account and clearance...

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7 months ago
Gamma, Your Option’s Silent Accelerator and Decelerator Pedal
June 01, 2021
Other

Gamma, Your Option’s Silent Accelerator and Decelerator Pedal

What is Gamma? Gamma is one of the least understood of the Greeks affecting an option’s price. Many investors are familiar with the Greek variable delta: the change in the underlying option’s price with respect to the change of the underlying stock price. Gamma is the rate of change in delta per $1 dollar move in the...

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8 months ago
Options Trading Insights with our 13 Year Technical Analysis Backtest
April 29, 2021
Technical analysis

Options Trading Insights with our 13 Year Technical Analysis Backtest

Overview Technical analysis is a powerful, yet exceedingly difficult method of analysis to understand and quantify. By leveraging historical data, technical analysis aims to forecast the future price movement of a financial asset. While many of these strategies may look promising, the reality is that implementation of these...

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9 months ago
Replacing Stock with Longer
Dated Options
October 28, 2019
Trading Idea

Replacing Stock with Longer
Dated Options

Long-term options (options expiring in more than 9 months) provide a cost-effective way of gaining long term exposure to stocks with a smaller capital outlay and limited risk. The average price of a stock in the TSX 60 has almost doubled in the last decade. This translates to significantly more capital being required to...

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2 years ago
Entering Options Orders and Managing Positions
October 22, 2019
Risk Management

Entering Options Orders and Managing Positions

Learning how to trade options is a process that takes time and patience. A critical part of placing your first options trade is learning how to enter an order into your brokerage account. Entering options orders can be daunting due to the many variables involved. This post highlights the procedures and best practices for...

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2 years ago
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